An Australian company that was dudded out of millions by Delhi Commonwealth Games organisers has been asked to pay some of the money they received back.

The development comes as the scandal has drawn in the English royal family with Prince Edward, vice-patron of the games, lashing out at the organisers' attitude to payment.

In a letter to an Australian company, a representative of the prince is quoted as saying "his royal highness has expressed his empathy ... as he is aware of the ongoing problems and extremely frustrating situation", the Daily Telegraph reported on Monday.

However, Jamal Singh, organising committee CEO has claimed Howard and Sons owes organisers $500 after the company was "overpaid" despite only a small portion of the $350,000 it is owed.

He claimed the company had committed a "serious breach of the contract", the Telegraph reported.

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